Patterson Companies Inc (PDCO)
Days of sales outstanding (DSO)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | 12.07 | — | 13.41 | — | 13.31 | — | 16.19 | — | 13.72 | — | 15.08 | — | 13.88 | — | 17.16 | — | |
| DSO | days | — | — | — | — | 30.23 | — | 27.22 | — | 27.42 | — | 22.55 | — | 26.61 | — | 24.20 | — | 26.29 | — | 21.27 | — |
January 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days of Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO typically suggests that a company is efficient in collecting receivables, while a higher DSO may indicate potential issues with collecting payments.
Analyzing the DSO of Patterson Companies Inc based on the provided data, we observe fluctuations in the ratio over the selected periods. In July 2022, the DSO was 21.27 days, indicating the company was efficient in collecting payments. However, in October 2022, the DSO increased to 26.29 days, which suggests a slight delay in receivables collection compared to the previous quarter.
The DSO continued to fluctuate over the following quarters, with values ranging from 22.55 days to 30.23 days. This variability may be influenced by factors such as changes in sales volume, credit policies, and customer payment behaviors. Overall, the trend in Patterson Companies Inc's DSO indicates some variability in its receivables collection efficiency, which may warrant further investigation into the company's credit and collection processes.
It is important for stakeholders to monitor DSO trends over time to assess the effectiveness of the company's credit management practices and its ability to convert sales into cash efficiently. A high DSO can tie up working capital and impact liquidity, while a consistently low DSO may indicate overly aggressive collection practices that could potentially strain customer relationships.
Peer comparison
Jan 31, 2025